Xceed Mortgage Corporation is moving forward with its plans to become a federally regulated Schedule One Bank with a meeting of shareholders (and vote on the plan) set for September 10.
The company's CEO, Ivan Wahl, reiterated in a recent statement that becoming a bank would provide an additional source of funding that could be put toward mortgage origination activities, which will shift from the company's previous offerings.
"The majority of mortgages we used to do were high ratio uninsured mortgages and that, of course, is not permissible if we're a bank," Wahl told CMP. "We will be doing conventional loans (80 per cent LTV or less) and so we're really going after a different market than we were previously even though we will be returning to that non-conforming space."
Wahl said self-employed businesspeople with "reasonably good credit" will be a focus if the bank plan is approved. He added that while people with damaged credit will be considered, they will need a minimum 20 per cent down payment on a home purchase to obtain a loan.
